Chamber is the largest employer representative body in the Island, a vibrant association of members from all business sectors who are dedicated to the promotion of trade, commerce and the general prosperity of Jersey.

Budget 2018

Budget 2018 builds on the package of measures agreed in the Medium Term Financial Plan (MTFP), combining savings, efficiencies and revenue raising measures to enable investment in priority services.

It does this in a balanced and prudent way that ensures Jersey’s continued prosperity by preserving strong public finances and delivering balanced budgets by 2019.

Budget 2018 supports working families by increasing tax allowances and it asks businesses and future High Value Residents to contribute a little more.

Treasury Minister, Senator Alan Maclean, said “Budget 2018 supports the economy in the short term, maintains investment in the health and social care we need as our society ages, and funds improvements to schools so our children can develop the skills they will need to achieve fulfilling careers.”

Personal Tax Proposals

2.5% increase in the tax free income allowance for working age people will benefit 35,000 households and reduce a single person’s annual tax bill by £91 and that of a married couple or civil partnership by £156.

this will take Jersey’s personal tax free income allowance to £14,900, which compares to Guernsey’s allowance of £9,675, the UK’s of £11,500 and the Isle of Man’s of £12,500

second earner’s allowance to increase by £850 to £5,850, eliminating the disparity in allowances between married and cohabiting couples, where both partners are earning. This measure will benefit 12,000 households

increase in the minimum annual tax payable by new High Value Residents from £125,000 to £145,000. Minimum tax contribution to be reviewed every five years from 2023. This will apply from January 2018.

Company Tax

widening definition of a financial services company to move more financial services companies into the 10% tax rate, raising £3 million per year

20% income tax on the profits of retailers making at least £500,000 a year. The tax will start on profits of £500,000 with the full 20% rate from profits of £750,000. This will raise an estimated £5.7 million a year from around 20 businesses, at least 75% of which are not locally owned

increase in ISE fees and more companies required to pay them. These fees are paid by regulated financial services businesses and they currently raise £9m per year. This measure will raise an extra £1m from approximately 1,500 companies.

These measures will help to fund the growing costs of health and social care, making a contribution towards the funding lost when the States Assembly rejected a sustainable health charge.

Impôts

increase in impôts duties payable on alcohol, petrol and diesel in line with RPI

increase in duty on tobacco will be RPI plus 5%, with a slightly higher increase for hand rolling tobacco to continue equalising the duty rates

Vehicle Emissions Duty

VED rates to increase by 2.5% in line with RPI

cars emitting 50g CO2 per km or less are exempt from paying VED

This initiative is not solely aimed at raising additional revenue, but to encourage Islanders to choose less polluting vehicles.

Growth Proposals

MTFP identified an extra £40 million per year for health and social care. Budget 2018 allocates £8 million

£2.1 million to be taken from 2018’s growth allocation to fund the Department for Infrastructure, as a result of liquid waste charges being deferred until 2019

remaining £11 million of growth for 2019 to be proposed in Budget 2019, subject to the approval of £11 million of waste charges or equivalent revenue raising measures

The Treasury Minister, Senator Alan Maclean, said “We need to maintain investment in priority services and our balanced approach to savings, efficiencies, and revenue raising secures that investment in a way that is fair, appropriate, and in the best interests of our island.

“The post-Brexit reality is an uncertain one but our strong public finances and resilient economy are well positioned to manage both the opportunities and threats that will emerge.”